IRA Investment and Tax Planning

IRA Investment and Tax Planning

Many retirees have said their IRA, 401(k), TSA or similar qualified retirement plan is their largest asset next to their home.  However, a startling number of people are unaware that at the time of withdrawal, taxes can claim a significant amount…is it 40%? Is it 80%??  Without a Multi-Generational IRA planning strategy in place, Uncle Sam is waiting to get his share.
 
Why an MGIRA Can Be the Most Important Thing You Do for Your Family
 
A Multi-Generational IRA strategy (“MGIRA”) is designed to allow for a much greater period of tax-deferral and the compounding of earnings.  Depending on the ages of each beneficiary and rates of return, an MGIRA can grow to many times the balance originally inherited. With an MGIRA, you can create financial security for your children, grandchildren and other loved ones.
 
Required Minimum Distribution (RMDs) Planning
 
At age 70½ IRA owners must begin taking a minimum withdrawal from their accounts, regardless if they need the money or not. This money has never been taxed and the government has waited long enough. They want their share.
 
RMDs become a very important part of the planning process. It is important to take the correct amount, decide from which qualified account to take them, determine the most strategic timing (is it at the beginning of the year or the end of the year?) and ensure the proper liquidity.
 
This all plays into the larger, broader need for income planning. What role do the RMDs play in your retirement income and how do we determine an income strategy that is the most tax efficient?
 
Estate & Trust Advisors is affiliated with America’s Tax Solutions. Jordan Jacobs is an America’s Tax Solutions’ Wealth Preservation Consultant who specializes in retirement distribution planning, Roth IRA conversions, rollovers for qualified plans, and the emerging arena of Multi-Generational IRAs. Jordan can help you design a financial plan that helps you maximize your retirement nest egg.  He is the preeminent provider of retirement distribution strategies in the Chicagoland area.  Jordan can help you implement this simple strategy, which will not only protect your retirement assets, but will also keep them in your family and growing for generations.